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BM&F’s Chairman and CEO awarded Operational Qualification Program seals to the first certified brokerage houses, during a ceremony that was held on Thursday, August 9th. The president of CVM (Brazilian Securities and Exchange Commission), Maria Helena Santana, stated that BM&F’s initiative “exemplifies an adequate and correct vision on what adds value to the business”. Ms. Santana participated in the event in which the certified brokerage house were awarded BM&F Seals of Qualification, an unprecedented initiative by the Exchange.
Seventy-five Seals of Qualification were awarded, within the five strategic positioning options created by BM&F. The event took place at São Paulo’s Citibank Hall and gathered member brokerage houses, members of BM&F’s Board of Governors, entrepreneurs, representatives of Brazil’s Central Bank and other institutions. According to CVM’s president, the strive for a better and more secure business environment drove the brokerage houses into obtaining the Seals of Qualification, and will be responsible for the uptrend of competition in the Brazilian market. Ms. Santana congratulated the Exchange’s Qualification Program and the certified brokerage houses. She also praised the brokerage houses that are working on obtaining their certification.
According to Ms. Santana, the industry’s next challenge will be the principal of suitability, by which the industry must be certified that it is offering the investor the best investment option for his needs and profile. In her speech, CVM’s president, highlighted the role of self-regulation. “When maket entities do their part, CVM can dedicate itself to solving other problems more efficiently”, she declared.
In his speech, BM&F’s Chairman, Manoel Felix Cintra Neto, said that the Qualification Program created by the Exchange “proves we can reach excellence at all the levels contemplated by the Seals”. “BM&F’s Program contributes to maintain the systems capillarity. One can not build a great market without a perfect harmony of political and professional firmness”.
Mr. Cintra Neto said that “the performance of the Brokerage Houses clearly demonstrates a community determined to do its part”. “BM&F and its members did not decline the responsibilities that go hand-in-hand with excellence in service and self-regulation. These responsibilities were played out with independence and mutual respect, which must exist between the regulator, the Exchange, and the market participants”.
BM&F’s CEO, Edemir Pinto, stressed the courageous decisions carried out by the Exchange’s Board of Governors during the Qualification Program that resulted in the Seals. Mr. Pinto pointed out the efforts and investments made by the brokerage houses are already showing through. Investments in training grew 141% during the period, and in compliance were up by 163%. A total of 2,806 professionals were certified. In relation to self-regulation, the brokerage houses’ performance indicators expressed an upward trend.
BM&F launched the Program for Strengthening the Brokerage Sector in 2005. The Program’s objective is to encompass a series of initiatives aimed primarily at providing economic and operational solidity to the brokers in the derivatives markets. The first phase of the program – from January 2005 through June 2006 – sought to provide the member Brokerage Houses with more economic and financial robustness, technological updates for their operational bases (through the restructuring of the Fund for Broker Financing), a professional qualification upgrade for their trading and back office desks, and the introduction of additional compliance procedures and requirements.
The second phase — called the Operational Qualification Program (PQO) — involved the enhancement of internal controls, identification of specialties and preparation for the future certification of strategic positioning choices. The PQO includes a basic guideline, compulsory for all the brokerage houses, and a specific guideline, relative to the five strategic positioning niches: agro broker (agribusiness); carrying broker (custody and settlement); execution broker (professional trading); retail broker (corporate market); and web broker (internet trading).
